EA & Bot Trading on Prop Firms: What You Need to Know
Can you use Expert Advisors (EAs) and trading bots on prop firm accounts? Learn the rules, restrictions, and best practices.
Table of Contents
- 01What Are EAs and Trading Bots?
- 02Firms That Allow EA Trading
- 03Common Restrictions
- 04EA Best Practices for Prop Trading
- 05Risks of EA Trading on Prop Firms
Automated trading is increasingly popular, but prop firms have specific rules about EAs and bots. Here's what you need to know.
What Are EAs and Trading Bots?
- EA (Expert Advisor): Automated script for MT4/MT5
- Bot: General term for any automated trading program
- Algo trading: Strategy-based automated execution
Firms That Allow EA Trading
- ✅ FTMO: Allowed (with conditions)
- ✅ The5ers: Allowed
- ✅ E8 Funding: Allowed
- ✅ Funded Next: Allowed
- ✅ MyFundedFX: Allowed
Common Restrictions
❌ Usually Banned
- HFT (High Frequency Trading): Micro-second trades
- Latency arbitrage: Exploiting price feed delays
- Tick scalping: 1-2 second trades
- Copy trading from other accounts: Sometimes restricted
- Grid/Martingale without stop loss: High risk EAs
✅ Usually Allowed
- Trade management EAs (partial closes, trailing stops)
- Strategy-based EAs with normal hold times
- News filter EAs
- Risk management EAs
EA Best Practices for Prop Trading
- Test extensively: Paper trade for months first
- Understand the logic: Know what your EA does
- Set conservative risk: 0.5-1% per trade max
- Monitor regularly: Check daily, even if automated
- Have a kill switch: Ability to stop EA instantly
- Avoid over-optimization: Curve-fitted EAs fail live
Risks of EA Trading on Prop Firms
- ⚠️ EA malfunction during high volatility
- ⚠️ Server disconnections
- ⚠️ Unexpected market conditions
- ⚠️ VPS downtime
- ⚠️ Broker/firm execution differences
⚠️ Important Warning
Many "prop firm passing EAs" sold online are scams or will get you banned. If an EA promises to pass challenges easily, be very skeptical. There's no magic solution.
💡 Our Advice
If you use EAs, treat them as tools, not solutions. You still need to understand trading, monitor performance, and manage risk. The EA is an executor, you're still the trader.
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